Juab County certainly finished 2001 on an
economic high note. For the year, employment gains
averaged almost 7 percent&emdash;rather unusual in a time
of national recession. True, joblessness continued to
rise&emdash;no doubt because many Juab County workers
commute into less economically robust areas. While both
construction and sales have seen better days, by fourth
quarter, both indicators were showing improvement.
Keep in mind that the rate of growth in nonfarm
jobs is probably the best economic indicator for a local
area. When we examine that figure, its easy to conclude
that the county is in excellent economic shape. It's this
growth in employment that probably worked to shored up
the other indicators by year-end.
Despite a strong increase in the number of jobs,
unemployment in Juab County continues to rise. While the
national recession does not appear to have touched job
growth, its fingerprints are all over the unemployment
rate. Second and third quarter jobless rates slipped
above 4.5 percent, and by fourth quarter, Juab County
joblessness registered 6.1 percent. Just to put this all
in perspective, during the fourth quarter of
2000&emdash;just one year earlier&emdash;Juab County's
unemployment rate measured only 3.3 percent.
Unemployment is based on where a worker lives.
Nonfarm jobs are measured by where the job is located. In
Juab County, many workers commute to work in counties to
the north. What appears to be happening is that commuters
are losing their jobs, while employment increases within
the county's borders.
In terms of employment growth, Juab County seems to
be performing a nice counterpoint to the national
recessionary trend. While the nation loses jobs, Juab
County is experiencing rapid, employment
expansion&emdash;and has done so for all of 2001. Third
and fourth quarters were just a continuation of the
expansion started in the first half of the year. Between
the third quarters of 2000 and 2001, jobs in Juab County
expanded by more than 7 percent. Fourth quarter didn't
fall far behind with a growth rate of 6.5 percent. Keep
in mind that in the first quarter of 2000, the county was
actually, losing employment.
Most industries shared in this expansion. In fact,,
transportation/communications/utilities proved the only
industry to show employment declines, in both the third
and fourth quarters. Even in this industry, the losses
measured only a few jobs. Most industries experienced
robust expansion in at least one of the lost two quarters
of 2001.
These losses were focused in the
trucking/warehousing industry.
Mining showed a 7-percent year-over employment
decline during the third quarter only to bounce-back with
an 11-percent rise for fourth quarter. The third quarter
loss amounted to only seven jobs, while the fourth
quarter increase totalled 10 positions. Losses were
distributed throughout the mining industry, during third
quarter, but concentrated in metal mining during the
fourth quarter.
Manufacturing switched the tables with a
fourth-quarter loss and a third-quarter gain. Between the
third quarters of 2000 and 2001, manufacturing added one
position. Fourth quarter's loss measured four jobs.
During the third quarter, durable goods manufacturing
gains offset nondurable manufacturing gains. By fourth
quarter, durables employment levels had stopped improving
and couldn't offset the minor losses in nondurables,
manufacturing.
Who was the largest producer of jobs in Juab County
during the last half of the year? The services industry
stepped up to the plate and batted a homerun. Compared to
a year ,earlier, third quarter services employment was up
90 positions and 15 percent. Fourth quarter's year-over
performance was still impressive with the additions of
more than 60 new jobs.
Services? Aren't all those jobs low pay? Not
necessarily. Some of the lower-paying services industries
actually lost employment&emdash;particularly hotels and
motels. The largest job gains occurred in health services
with noticeable help from social services and engineering
services.
The trade industry also made some notable
contributions to the Juab County labor market. Between
the third quarters of 2000 and 2001, trade added almost
70 new positions. By fourth quarter, the job creation
rate had slacked off substantially with only 26 net new
positions. Much of the third quarter gain can be traced
to an influx of employment at eating/drinking places.
Another anomaly occurred in the construction
industry. Construction was a steady job producer adding
about 30 new year-over jobs in both the third and fourth
quarters. General contractors actually, showed decreased
employment, while the trades were the primary source of
employment expansion.
The public sector wasn't a major source of
employment during the third quarter (it added only six
positions), but fourth quarter wrote another story.
Between the fourth quarters of 2000 and 2001, government
in Juab County created almost 40 new jobs. Federal and
local governments created most of this improvement. Keep
in mind that the public school system (included in local
government) only accounted for a small share of these now
jobs.
The finance/insurance/real estate industry brought
up the rear of the job producing industries. Both
quarters showed year-to-year employment increases of
about five positions. However, because this industry is
relatively small in Juab County, the percentage increases
registered in the double-digit range.
Construction ended on a positive note in 2001.
Third quarter's numbers appeared rather dispiriting with
an overall valuation decline of 18 percent. Only a large
increase in non-residential additions/alterations/repairs
kept the total from sinking even lower. However, fourth
quarter saved the year with an increase of almost 180
percent over the same quarter in 2000. At year-end 2001,
Juab County had managed to more than double the value of
the permits approved during 2000.
Third quarter's rather dismal figures can be traced
to declines in all areas except non-residential
additions/alterations/repairs. The number of new homes
permitted dropped one-fourth and their values declined by
30 percent. New non-residential permitting slipped by 20
percent based on a year-over comparison and residential
additions/alterations/repairs also tumbled by almost 30
percent.
Fourth quarter figures were buoyed by substantial
expansion in both new residential and non-residential
construction permitting. The number of permits increased
from only eight during the fourth quarter of 2000 to 27
in the fourth quarter of 2001. And, the value of these
homes tripled. Non-residential permitting was
particularly strong for fourth quarter.
During 2001, 65 new dwelling units were approved
for construction in Juab County.
Nephi City authorized 49 of these new permits. An
additional three permits were granted in Eureka. The
remainder of new permits were for construction in the
rest of the county. Eighty-percent of the new residential
permits approved during 2001 were for traditional
single-family homes. All but one of the remaining permits
were for apartment/condominium units.
Perhaps the biggest story, in Juab County's 2001
construction saga was the huge amount ($6.9 million) of
permitting in the residential
additions/alterations/repairs category. This amount
topped the $6.7 million in new home values and the $2.4
million in nonresidential construction.
Sales actually held steady during third quarter.
But a serious decline in services industry sales knocked
the wind out of this indicator's sails. During fourth
quarter, retail trade sales gains proved even more
substantial. This time, services joined the growth party
with some rather substantial year-over increases. Even
declining wholesale trade sales couldn't totally dampen
the sales enthusiasm in retail trade and services.
Sales in the wholesale trade sector didn't fare
quite as well. In comparison to 2000, wholesale trade
figures slipped by about 15 percent. A strong increase in
private vehicle sales did keep some of the downturn dogs
at bay.
Services industry sales told one of the saddest
Juab County sales stories in 2001. Between 2000 and 2001,
services industry sales dove by almost one-fourth. The
business services industry was the big loser in this
tale. Business services sales dipped by a whopping 77
percent during 2001. Most other services categories
showed increased sales. Even hotels/motels, which felt
the effects of decreased travel after September 11,
pulled out a 6-percent annual increase.
In the, business investment category, no clear
pattern emerged. Construction and communications both
showed dramatic increases in expenditures. At the other
end of the spectrum, manufacturing expenditures dropped
precipitously (not a big surprise during a national
recession).
The only negative bump in Juab County's economic
road at the end of 2001 was the county's unemployment
rate. Otherwise, even the struggling indicators had
turned positive by the fourth quarter of 2001. With the
national recession moderating, Juab County's economy
should remain in fine shape during 2002.
Economic Events
•A citizens committee has been formed to study
the feasibility of constructing a skate and bike park in
Nephi. The city will help the committee locate funds for
the park, which is expected to cost more than
$200,000.
•Towns in Juab County are benefiting from the
formation of a special services fire district last year.
The town of Eureka will be getting a new $250,000 fire
truck and Levan will get a $55,000 truck this year. The
funds to buy the trucks came from grants and low or
zero-interest loans for which the service district was
eligible.
•Congress has given approval for $2 million
for reconstruction of I-15 from Sevier River to Mills
Junction.
•A Nephi Engineering firm has given the Juab
County Commission $5,000 to pay for a study by Union
Pacific on upgrading a railroad crossing used by
residents of Sunset Bay subdivision west of Mona. The
study will look at installing safety lights and
straightening and elevating a section of road to improve
visibility for drivers.
•Nephi has awarded an $85,000 contract to
Geneva Rock Products to make emergency upgrades to the
runway at the city's airport. The city is currently
seeking funds to upgrade the airport but the process is
lengthy and the runway needs immediate repairs.
